Nigeria: Inflation Falls Marginally

Inflation figures in Nigeria fell further in June, for the fifth straight month since January, the National Bureau of Statistics has said.

Data released by the statistics office on Monday, showed that inflation, measured by the Consumer Price Index, fell to 16.10 per cent in June, 0.15 percent lower than the rate recorded in May.

The CPI reflects the average change over time in prices of goods and services consumed by people for day-to-day living.

The new inflation figures raised more confidence on the recent forex policies of the Central Bank of Nigeria, CBN, which has sustained its intervention in the retail segment of the market.

“The latest index represents the fifth consecutive decline in the rate of inflation since January 2017,” the statistics agency said.

On a month-on-month basis, the NBS said the index was 0.30 per cent lower than 1.88 per cent recorded the previous month.

The statistics office confirmed that core inflation slowed down by 0.50 percent to 12.50 percent from 13 percent, the 8th straight month of decline since November 2016.

However, food inflation continued pressure on prices rising marginally to 19.91 percent in June 2017. It was up 0.64 percent points from the 19.27 percent May record.

The rise was as a result of increases in prices of meat, bread and cereals, fish, potatoes, yam and other tubers, oils and fats, milk, cheese and eggs, coffee, tea and cocoa.

The highest increases were recorded in prices of solid fuels, clothing materials and other articles of clothing and clothing accessories, liquid fuels, spirits, books and stationeries, passenger transport by air, garments, shoes and footwear and motorcycles.

The Urban index rose by 16.15 percent (year-on-year) in June 2017 from 16.34 percent recorded in May, while the Rural index increased by 16.01 percent in June from 16.02 percent in May.

On month-on-month basis, the urban index rose by 1.60 percent in June from 1.84 percent recorded in May, while the rural index rose by 1.57 percent in June from 1.92 percent in May.